The Next App Battleground: China

3/6/2013 4:30PM

The biggest app makers are increasingly setting their sights on China, as the internationalization of the apps business creates no only greater opportunities for developers but also heightened risks, Scott Austin reports. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... and ... I ... what China ... is the next battleground for how ... well does while commit Digits I'm Simon Constable and joining us Scott Austin tech editor of The Pty Wall Street onto it's an enormous job ... in us and the maps to ... move it ... some China over to all people or ... Pakenham ... program here that's right Cellular BC the US is the largest ... market perhaps ... um but as the potential for growth slows here in the U S market ... a lot of big developers are looking in other countries and China naturally Hazell world's largest ... smartphone market ... I'm really has a great potential ... ah but they're finding ... as they move into this market ... I it's not as easy as as it was in the U S suffer for a whole host of reasons was so let's go through some of those reasons number one other things that have just a lesson right is that ... it and she could be hit but it's ... that ... people expect all apps to be for a time ... the expectation yet for a business model standpoint they don't intend to ... use premium is bacon in the U S where you offer a free app be going inside the app and then suddenly the new upgrade ... but doesn't really happen in China who are willing to pull out the credit card for that reason ... I they also don't normally pay for apps out most of them are free and if you look at ... that the market size ... the number of downloads ... compared to the U S market to get second ranking by country ... terms of revenue it's like seven or something so ... popular with began willing to to necessarily pay so ... what is big there is a virtual currency ... highs and in app purchases of games do really well when you offer in the currency ... one of the biggest issues those that there's dozens of app store is it's not like a two course race ... without calling Dougall here in the US ... you have to Wade through all these out ... of stores that are owned by carriers and Internet sites and all sorts of different companies and they all have ... somewhat different rules ... and different strategies with what works ... this all the Free Mobile Payment Platform isn't yet to integrate with the some of these companies are find that the hard way ... as are launching their naps there and is also regulations which which recollections on top of the penal a play on this one is that the people don't necessarily know all the regulations are a boatload of regulations but they seem to be changing month by month and so I think ... you know I have three of which is a company that makes this new ... seeking happier in the US does really well ... device to top last year the CEO said ... I you know it's it's it's it's getting very troublesome if he can all just come down any moment ... where you know these regulations just don't know what to look for an accident ... um ... that that's kind of troublesome course there is also rampant piracy and there's cloned apps as well so ... you want to once there ... I you have to be wary of what else is out there and some of the other app makers like Tencent unseen in some of the company's there ... really is the domestic ones that domestic rival dun really know how to cut away to the market now to appeal to consumers there so it sort of an uphill battle ... has great potential but there's also ... potential here for ... some problems potential problems for those of the Center website right stuff Scott Austin tech editor for The Wall Street only to meet mall man on the vs Datacom ... I'm Simon Constable ...